bottled water strategy in uk

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Marketing Management.

Critical Analysis of current practices in TY NANT and

Value addition evaluation.

Date: 14 – May - 2013

Table of ContentsEXECT!VE "MMA#Y$.......................................................................................3

MA#%ET!N& 'E(!NE'$....................................................................................... 3

MA#%ET!N& )#*CE""........................................................................................4

Plans Oriented for Marketing ‘Demand’ trategy:..............................................4

!on"e#t of #rod$"tion...............................................................................%

!on"e#t of #rod$"t:...................................................................................%

!on"e#t of selling:....................................................................................%

!on"e#t of marketing................................................................................%

!on"e#t of o"ietal Marketing...................................................................%

MA#%ET!N& "T#ATE&Y$.....................................................................................&

1. Market egmentation...................................................................................&

2. Market 'argeting..........................................................................................(

3. Market Positioning and Di)erentiation.........................................................(

MA#%ET!N& M!X$................................................................................................(

Prod$"t............................................................................................................... *

Pri"e...................................................................................................................+

Pla"e................................................................................................................... +

Promotion........................................................................................................... +

C*M)ET!T*# ANA+Y"!"$..................................................................................10

C*M)ET!T!VE "T#ATE&Y$................................................................................11

Porter’s ,eneri" Model for !om#etitie dantage:.........................................12

!om#etitie adantage strategy #$rs$ed at '/ ' n Porter’s ie:.........12

!om#etitie adantage strategy #$rs$ed at '/ ant in nso)’s ie:..........13

nso) #rod$"t market grot5 matri6:..............................................................13

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Date: 14 – May - 2013

TEC,N*+*&!CA+ 'EVE+*)MENT" !N T,E (!E+' *( MA#%ET!N&$............14

1. o"ial Media:..............................................................................................14

2. nterest 8ased adertising 8e5aio$ral 'argeting:...................................14

3. Mo<ile adertising......................................................................................1%

4. Marketing M= Modelling............................................................................1%

C*NC+"!*N$....................................................................................................1%

#ecommendations$..........................................................................................1&

-ibliograpy......................................................................................................1&

EXECT!VE "MMA#Y$O$tstanding marketers and organi>ations s5are a "ommon goal?

"ons$mers m$st <e "onsidered as t5e 5eart of marketing. 'oday@

Marketing is all a<o$t "reating and maintaining "ons$mer al$e and

78 79 !7; P134*(%






Date: 14 – May - 2013

e6"5ange of #roAta<le relations5i#s. '5e in"e#tion "om#lies ario$s

"on"e#ts and $nderstandings s$"5 "ons$mer ants and needs@ eal$ating

market targets@ "reating al$e #ro#osition@ and #roAta<le e6"5anges.

'oget5er@ t5ese <$ilding aria<les ill sere market s5are@ "$stomer and

eB$ity and #roAts to organi>ations. '5e #$r#ose of t5is re#ort is to

e6e"$te a "riti"al analysis on t5e key marketing a"tiities and

"ontri<$tions of t5e marketing de#artment to TY Nant1@ one of t5e

leading s$##liers in t5e <ottled ater ind$stry. n addition@ t5e s"o#e of

t5is re#ort is to reie '/ ant’s marketing o#erations to date and to

deelo# t5e <$siness for t5e f$t$re. C$rt5er to t5e eal$ation@ t5is re#ort

ill s$mmari>e f$t$re deelo#ments in t5e Aeld of marketing t5ro$g5

te"5nology.

MA#%ET!N& 'E(!NE'$nlike many <$siness f$n"tions@ marketing deals it5 "$stomers.

ttra"ting ne "$stomers <y deliering s$#erior al$e and en5an"ing

"$rrent "$stomer satisfa"tion are to of t5e main folds of marketing. Cor-

#roAt and not – for #roAt organi>ations s$"5 as ,oogle and m$se$ms

res#e"tiely@ aim in im#lementing so$nd marketing to attain "riti"al

s$""ess in t5e organi>ation. Eotler and rmstrong 2012 f$rt5er ela<orate

marketing to <e Fne sense of satisfying "$stomersG. n s$##ort@ 8$rnett

200* re-instated t5at t5e Faim of marketing is to make selling

$nne"essaryG and t5at adertising and selling are only a se"tor of t5e

marketing mi6. H5ile terming Marketing mi6@ it is a set of a##roa"5es t5at

f$n"tion toget5er to en5an"e "$stomer demand and satisfa"tion. On a

"om#re5ensie note@ marketing is to <e $nderstood as t5e managerial and

so"ial #ro"ess <y 5i"5 <ot5 organi>ations and indiid$als o<tain t5eir

o<Ie"tie <y deelo#ing and e6"5anging al$e. n a narro "onte6t@

marketing is em#iri"al inoled in #roAt deelo#ment on a al$e added

1 5tt#:JJ.tynant."omJmain.as#6K#DL2-0nDL2

78 79 !7; P134*(%






Date: 14 – May - 2013

#ro"ess. '5$s@ deAning marketing as a #ro"ess t5ro$g5 5i"5

organi>ations "reate al$e and en5an"e "$stomer satisfa"tion in order to

s$<stantiate demand for t5e organi>ation.

MA#%ET!N& )#*CE""$

do#ted from Eotler and rmstrong 2012

'5e Ag$re a<oe re#resents a sim#le Ae ste# model of marketing

#ro"ess. O<sera<ly@ t5e Arst fo$r ste#s dis"$ss a<o$t "reating "$stomeral$e and strong "$stomer relations5i#s 5ile t5e last #ro"ess solely

dis"$sses a<o$t "a#t$ring "$stomer al$e in ret$rn. H5ile generalising

ea"5 "on"e#t "o$ld get "om#le6 and "om#re5ensie@ t5is re#ort ill s"o#e

its #arameters to marketing management orientation 5i"5 is an integral

element to #lan and synt5esi>e "$stomer demand.

Plans Oriented for Marketing ‘Demand’ Strategy:

ss$ming t5at a maIor deriation of "ons$mer and market#la"e 5as <een

#rod$"ed@ marketing management eal$ates "$stomer oriented marketing

strategy. Organi>ations Arst m$st target its "$stomers <y market

segmentation 5ere market is diided into segments of "lients@ and

sele"ting 5i"5 segments it s5o$ld f$rt5er #$rs$e on@ 5i"5 is also knon

as market targeting. Organi>ations m$st also deAne systemati" a##roa"5

in di)erentiating and #ositioning itself in t5e market ery@ et al.@ 2012.

long it5 t5is@ organi>ations m$st look into "5oosing a al$e #ro#osition.

78 79 !7; P134*(%

Investigate customer

demand and marketplace

Initialize plans for demand

oriented marketing

Implement an

integrative

marketing

strategy to deliver

Construct protable

relationships and customer

Acquire customer

value and customer

equity to enhance






Date: 14 – May - 2013

7ere@ t5e organi>ations de"ide t5e a##roa"5 it s5o$ld $ndertake to

delier #ros#e"tie "$stomer satisfa"tion and al$e #ro#osition. n order

to <$ild t5is@ Marketing m$st design stratigies t5at ill <$ild #otential

relations5i#s it5 its targeted "lients and "$stomers. '5ere are Ae

essentials "on"e#ts $nder 5i"5 marketing management orientation is

deelo#ed Eotler rmstrong@ 2012:

Concept of production$ Often a reason for Marketing

Myopia2 dmans@ 200+@ t5is "on"e#t "onstit$tes t5e idea

t5at "ons$mers ill fao$r #rod$"ts t5at are 5ig5ly aaila<le

and a)orda<le.

Concept of product$ '5is "on"e#t "onstit$tes t5e idea of

"ontin$o$s #rod$"t deelo#ment@ 5ere t5e organi>ation

targets t5ose "ons$mers t5at fo"$s on #rod$"ts t5at o)er t5e

most in #erforman"e@ innoation@ feat$res and B$ality.

Concept of selling$ '5is "on"e#t generali>es t5e idea t5at

"ons$mers ill not fao$r t5ose #rod$"ts $ntil t5ey are

generated from a large s"ale and #romotion e)ort.

Concept of marketing$ Often "onsidered as a #5iloso#5y@

marketing "on"e#t infers itself to "onsider marketing

strategies s$"5 as targeting@ di)erentiating and #ositioning.

Concept of "ocietal Marketing$ De"isions and ideas

oriented toards "ons$mer’s reB$irements@ "ons$mer’s long

r$n interests and so"iety’s long r$n interests.

ss$ming t5at a detailed s$mmary 5as <een #roided@ t5is re#ort ill no

ga>e $#on t5e marketing management orientation '/ ' #$rs$es.

2 Often a mistake made <y sellers. ellers #ay more attention to s#e"iA" #rod$"ts

"ontri<$ted t5an to its <eneAts andJ or e6#erien"es o)ered.

78 79 !7; P134*(% Page %






Date: 14 – May - 2013

Organi>ations Arst de"ide 5i"5 "ons$mers it ill sere Market

segmentation and Market targeting8 and 5o ill t5ey sere Market

di9erentiation and Market positioning. n s5ort@ organi>ations m$st diide

t5e total market in <est segments and design a strategy to im#lement a

#roAta<le relations5i# Eotler rmstrong@ 2012.

1. Market Segmentation: '5e #ro"ess of <reaking t5e total

market into distin"t gro$#s of "ons$mers 5o #ossess indiid$alisti"needs@ #ersonalities and indiid$als 5o may reB$ire distin"t

#rod$"ts andJor marketing #rograms. '/ ant segments its market

to distin"t "ons$mers. ts #rod$"t are drone to satisfy 5ig5 end

#roAles and l$6$ry oriented "ons$mers. C$rt5ermore@ its distri<$tors

are "lassiAed into t5e l$6$ry gro$#s@ t5ere<y making '/ ant’s

market segmentation o<sera<ly.

2. Market Targeting: noles eal$ating distin"t demand in ea"5

market segments and making a narro a sele"tion "riteria to enter.

"om#any it5 limited reso$r"es may "5oose #arti"$lar segments

to en5an"e #roAt relations5i#s. '/ ant targets its market in terms

of so"ial and e"onomi" lifestyle. '/ ant targets its 5ig5 end #roAles

<y #resenting its aest5eti" a##eal to attra"t t5e segmented

"ons$mers.

3. Market Positioning and Dierentiation: Positioning is t5e

#ro"ess 5ere t5e organi>ation #ositions its #rod$"t in a #la"e

5ere it #rod$"es an aest5eti"@ desira<le and disting$is5ed a##eal

to t5e targeted "ons$mers from its "om#etitors 5ereas

di)erentiation is t5e #ro"ess 5ere t5e organi>ation de"ides to

al$e add its #rod$"t making aaila<le to "ons$mers for a)orda<le

"ost and 5ig5 B$ality 5en "om#ared it5 its "om#etitors. '/ ant

#ositions itself as a l$6$ry #rod$"t. C$rt5ermore@ '/ ant’s #rod$"t

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Date: 14 – May - 2013

deliers a de"laration of "5oi"e for "ons$mers 5o re 5ealt5

"ons"io$s and 7alo minded. '/ ant 5as also #ositioned itself in t5e

i"5e Markets $"5 as $6$ry 5otel and resta$rants 'y ant@ 2013.

n addition@ '/ ant 5as no entered into t5e retail se"tors t5ere<y

"reating f$rt5er al$e into t5eir #rod$"t@ t5ere<y di)erentiating t5eir

market HalesOnline 2012

MA#%ET!N& M!X$ss$ming t5at an in"entie marketing strategy 5as <een #rod$"ed@ '/

' m$st f$rt5er #lan t5e ni"eties of t5e marketing mi6. Marketing mi6

is often referred as tools of marketing t5at me"5ani>es t5e marketing

strategy. More "ommonly@ marketing mi6 "an <e f$rt5er $nderstood in t5e

traditional fo$r Ps@ e6#lained in t5e Ag$re <elo:

do#ted from Eotler rmstrong@ 2012

78 79 !7; P134*(% Page *

TA#&ET

Consumer

s

)roposed

)*"!T!*N!N&

)#*'CT$

N$ality

ariety

Design

8rand ame

)#!CE$

ist Pri"e

Dis"o$nts

lloan"es

Payment

Period)#*M*T!*

N$

Personal

elling

P$<li"

;elations

dertising

)+ACE$

!5annels

o"ations

nentory

ogisti"s






Date: 14 – May - 2013

its "or#orate #roAle reeal t5at #reio$sly '/ ' segmented its market

to 5ig5 #roAle "ons$mers@ t5ere<y ass$ming a a<oe aerage #ri"ing

range.

Place$ s mentioned earlier@ '/ ' 5ad its distri<$tion ranged at

feat$red o$tlets@ 5oeer ales online 2011 restates t5at '/ ' no

fo$"$ses its distri<$tion to retail o$tlets as ell. Ce of t5e o$tlets in E

5o distri<$te '/ ' ater are '!O Hales only@ Haitrose@ains<$ry@ O"ado@ 7arey "ols@ and 7arrods. C$rt5ermore@ t5e

distri<$tion leel 5as a orldide #arameter@ distri<$ting to "o$ntries

s$"5 as @ 8elgi$m@ '5ailand@ !anada@ Natar@ E$ait et".

Promotion$ ny a"tiities t5at inQ$en"e t5e merit of t5e #rod$"t and

attra"t larger "ons$mers "an <e termed as #romotion. Potentially@ a large

organi>ation like '/ ' is to <e "onsidered to inest 5ig5 in

adertisement of its #rod$"ts. C$rt5ermore@ o<sering its "$rrent #reio$s

"$stomers@ '/ ' 5as s5on s$<stantial #rogression in <$ilding <rand

indentity and re"ognitiion. Hit5 its i"oni" #rod$"t range@ '/ ' 5as

o<tained a orldide re"ognition of t5e $limate stylis5 refres5ment.

sso"iations it5 #$<l$"ations@ Alm@ media and asi#irational eents

f$rt5er ela<orates its #romotional s"5emes in order to e6tent its market

segment #arameters to <road leel. Cor e6am#le@ Per e’s@ a orld

renoned l$6$ry resta$rent in e /ork 5as "om#limented '/ ' to

ell synt5esi>e its #remi$m #ositioning. '5e "om#any also sells ario$s

mer"5andises in order to #romote t5e al$e of t5eir #rod$"t to t5e

targeted "$stomers.

C*M)ET!T*# ANA+Y"!"$m#lementing "om#etitie adantage "an alays reer< from t5e

fo$ndation of marketing strateigies. sim#le t5ree ste# model "an

#rod$"e a <reif $nderstanding 5o "om#etitor analysis <egin.

78 79 !7; P134*(%






Date: 14 – May - 2013

<een s$""essf$l.

Voss 6orld Higly induced marketingsegmentation! Onlinecor"orate trans"arency!#orld#ide distri$ution

)otential treat in attractingte market segments. CurrentMarket segment for V*"" asbeen targeted to potentialconsumers suc as <lmindustries and celebrities. ,iginvestment in promotion andcorporate marketing. *nlinecorporate transparency to gainmore customer e=uity.

C*M)ET!T!VE "T#ATE&Y$fter t5e #ossi<le re"ognition of t5e omni#otent "om#etitors@

organi>ations m$st no im#lement strategies in order to "onsolidate its

o<Ie"ties it5 t5e strategi" goals of t5e "on"erned organi>ation. '5e

$ltimate #$r#ose of t5is is to ra"e its marketing #otentials from t5e

"om#etitors. fter all@ t5e $ltimate #$r#ose of t5e marketing "on"e#t is to

inQ$en"e #roAta<le <eneAts <y ind$"ing al$e #ro#osition and "$stomer

satisfa"tion. ;e"onsidering t5e <ottled ater ind$stry@ seeral

entre#rene$rs 5ae ada#ted t5e $iche market ? segmentation toards t5is

se"tor@ "reating dynami" yet "om#le6 #arameters in a"5ieing

"om#etitie adantage. C$rt5er to t5is@ t5is re#ort ill state t5e marketing

strategy of '/ ' in a s$mmarised #attern folloing "on"ise yet

s$mmarised models of Porter and nso). Dis#layed <elo is Porter’s

generi" model for "om#etitie adantage as "ited in Ormanid5i

tringa@ 200*. ""ording to t5e #orter analysis@ Mi"ro and Ma"ro analysis

of t5e enironment is to <e deelo#ed in order to "reate t5e rig5t target

and #ositioning. '5ro$g5t t5e amalgation of t5ese of aria<les

systemati"ally@ "om#etitie adantage@ 5oeer in a "om#le6 nat$re@ is

ineita<le.

4 $<set of t5e market on 5i"5 target of t5e s#e"iA" #rod$"t is de#loyed. n s5ort@ t5ese #rod$"ts satisfy

s#e"iA" "ons$mer needs and market demands.

78 79 !7; P134*(%






Date: 14 – May - 2013

Porter’s %eneric Model for &om"etiti'e (d'antage:

do#ted from Porter 1+*%

&om"etiti'e ad'antage strategy "ursued at T) *(*T +InPorter’s 'ie#,:

Assumption derived from!

"# $A$"% 2&'&http!(())).tynant.com(*+,-I,+(-I,(/0"",12&3A",2&,40"2&52&"#2&$A$"

2&+"I2&52&,$6I+7.41- .

'/ ant 5as s$<stantiated its "om#etitie adantage t5ro$g5

di)erentiation fo"$s in t5e E and $ro#ean Markets. legan"e and design

5as <een one of t5e noti"ea<le ariants f$sing its "om#etitie adantage.

H5ile '/ ant’s distri<$tors 5ae 5ig5 end #roAles@ it sim$ltaneo$sly

a"5ieed aards and re"ognition for its e6"ellen"e in design and

elegan"e. n 2003@ '/ ant introd$"ed its #rod$"ts to retail o$tlets.

7oeer@ '/ ant 5as a##lied a distin"t strategy for its international

o#erations. Cor instan"e@ '/ ant a"B$ired a grot5 of 3%R in t5e

market des#ite of re"ession "laims HalesOnline@ 2011@ making it

78 79 !7; P134*(%

*niqueness perceived by customer A o) cost

position

'!((E#ENT!AT!*N C*"T+EA'E#",!) *# +*6E# C*"T

-C

(*C"

"






Date: 14 – May - 2013

o<sera<le t5at '/ ant im#lemented "ost and di)erentiation strategy to

attain s$"5 #rogress.

&om"etiti'e ad'antage strategy "ursued at T) *ant +in

(nso’s 'ie#,:

Most "ommonly@ nso)’s #rod$"t market grot5 matri6 is an ideal

re#resentation to determine t5e grot5 and deelo#ment of t5e

"on"erned organi>ation. '5e matri6 is deised into fo$r "ol$mns tagged as

Market deelo#ment strategies@ diersiA"ation strategies@ Market

#enetration strategies@ #rod$"t deelo#ment strategies.

(nso "roduct market gro#t matri-:

78 79 !7; P134*(%






Date: 14 – May - 2013

do#ted from !5a)ey@ 2011

'/ ant 5as e6tra"ted to "on"ise strategies from t5e matri6 a<oe. '5is

deriation 5as <een im#lemented from t5e geogra#5i" targets aro$nd t5e

organi>ation. '/ ant $ses #rod$"t deelo#ment strategies to ela<orate

t5eir market segmentation. ""ording to a re"ent "ase st$dy

H<admorgan@ 2012@ '/ ant deelo#s a al$e added #ro#osition to its

#rod$"t in terms of its mer"5andise@ elegan"e@ design and distri<$tors.

;e"onsidering its o#erations@ '/ ant distri<$tes its #rod$"t to 3&

"o$ntries aro$nd t5e orld@ o<sera<ly #erforming market deelo#ment

strategy '/ ant 2013. 7oeer@ '/ ant 5as not s5on o<sera<le

#rogress in $ro#ean and domesti" markets@ 5ile its sales in"lined to

%0R to international markets. '5is reass$res t5at '/ ant 5as deelo#ed a

s$""essf$l market #enetration strategy in international markets.

TEC,N*+*&!CA+ 'EVE+*)MENT" !N T,E (!E+'*( MA#%ET!N&$nnoations 5as alays <een t5e dominant #5enomenon in glo<al

<$siness markets. Most "ommon medi$m of "omm$ni"ation are '@ radio@

internet and is$als. Progression in te"5nology 5as <een inQ$ential to all

t5e organi>ations e6#anding t5eir market to seeral segmentations@

#ress$ring marketers to im#lement strategies for t5eir #rod$"ts to

#osition t5emseles in an o#timal media mi6 dertising ge@ 2010.

Colloing #oints ill 5el# '/ ' to en5an"e t5eir marketing t5ro$g5

te"5nologi"al as#e"ts.

1. Social Media: l$sie Ford of mo$t5G #5enomenon 5as alays

<een t5e 5$rdle adertisers so$g5t a ay. o"ial media makes an

immediate medi$m of lie "ons$mers’ res#onse. '5is allos

marketers t5e o#tion to monitor f$rt5er and "ontri<$te more

eS"iently. '5e im#a"t of so"ial media 5as <een s$<stantial as its5ifts t5e "onersation to t5e "ons$mers at an $n#re"edented leel

78 79 !7; P134*(% Page 1%






Date: 14 – May - 2013

of "ontrol oer ea"5 <rands@ eent$ally making t5em as t5e <est

adertisers of t5e <rand.

2. Interest .ased ad'ertising +.ea'ioural Targeting,:

8e5aioral targeting is #ers$asie for many "$stomers. '5is trend

5as deelo#ed a 5ig5 leel of #re"ision. 7oeer@ t5e leel of

"a$tion to <e o<sered 5ere is t5at "ons$mers are s$s#i"io$s of

<eing at"5ed on t5e e<. t is to <e $nderstood t5at self-reg$latory#rin"i#les 5ae already <een in legislation #rote"ting stat$tory

rig5ts in ad-s$##orted a"t@ 5ere t5e "ons$mers 5ae t5e rig5t to

allo s$"5 ads to <e is$ali>ed it5o$t t5eir #ersonal "onsent and

de"laration.

3. Mo$ile ad'ertising$ !onsidering t5is trend "an <e <eneA"ial

for '/ ant. ""ording to dertising age 2012@ mo<ile adertising

ind$stry is e6#e"ted to <e T1.%& <illion in 2013. nternet reeals t5e

#otential $sers for ea"5 market alloing t5em to deelo# an

integrated marketing strategy.

4. Marketing MI/ Modelling$ '5is #arti"$lar trend #roides

analysts it5 o##ort$nities to t5ink more #re"isely a<o$t integrated

marketing. nnoation in te"5nology 5as fo$nd ays to "reate 5ig5ly

#rod$"tie media-de"ision models <y intertining analyses of

"ons$mer sensitiity to a <randUs media #latforms. '5is me"5ani>es t5e

o##ort$nity to in"rease and en5an"e marketing #lan 5ile red$"ing

oerall "osts and <$dgets.

C*NC+"!*N$n "om#arison it5 t5e Anan"ial data ;efer ##endi"es@ it as o<sered

t5at '/ ant’s gross #roAt 5ad a de"line along it5 t5e ann$al t$rnoer.

One #ossi<le deriation from t5is is t5at '/ ant’s #rod$"tion 5as gonedon 5i"5 mig5t 5ae o""$rred d$e to fall in sales. C$rt5ermore@ as

78 79 !7; P134*(% Page 1&






Date: 14 – May - 2013

analysed a<oe@ '/ ant 5as not s5on o<sera<le #rogression in t5e

domesti" market. Hit5 t5e in"rease in "om#etitors in t5e same se"tor@

a$stere goernmental reforms and legislations makes t5e market

#enetration een narroer. ""ording to C 200(@ t5e fair trade trinity

reform o<ligates t5e reg$lation t5at <ottled ater ind$stry o#erations 5as

to follo <ot5 domesti" and e$ro#ean reg$altions. C$rt5er to t5e

o<seration in t5e Anan"ial data@ t5e "ost of sales 5as s5oen s$<stantial

in"rease d$e to #romotional "one#ts a##lied to #romote t5eir #rod$"t. t is

also o<sered from t5e analysis and data #roided t5at '/ ant sells most

of its #rod$"t to international markets d$e to ta6 <eneAts and #ri"ing

strategies. '5is interestingly seemed <$ild #roAta<le relations5i#s for '/

'.

#ecommendations$• n"rease t5e sales of t5e "om#any in t5e domesti" market

t5ro$g5 strignent market #enetration strategies.

• !onider t5e si>e of t5e target market. '/ ant m$st s$<tantiate

its a##roa"5es to retailer se"tor and "om#ete in normal #ri"e

range.

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